Intel Plunged After Earnings, but This Is What Investors Should Fear

Intel crashed after earnings, but long-term investors should fear this more.

Intel(NASDAQ:INTC) reported fourth-quarter earnings and full year earnings on Jan. 16. Shares sold off harshly, punishing Intel for missing bottom-line estimates. However, is that what investors should be concerned about from this chipmaking giant?

In this video, Tech and Telecom analyst Jamal Carnette argues that Intel's quarter wasn't as bad as Mr. Market's reaction. Some of this is due to Intel's large run up over the last three months. Recently, analysts and investors had turned bullish, with some comparing Intel's story to 2013's tech darling: Hewlett-Packard. From a fundamental basis, Intel performed well in the PC end markets, but experienced weakness in the data center. All told, Intel beat top-line estimates, but fell short on EPS projections.

While some of Intel's sell-off can be attributed by short-term, irrational investors, one thing should concern Intel investors in the long term: mobile. Although Intel has an audacious goal on being in 40 million tablets in 2014, investors should be concerned about execution risk here.

Author

After working at The Motley Fool, Jamal Carnette decided to try his hand at writing for a change. You can find him writing about technology, consumer goods, sports, and pontificating on any competitive advantage. His previous jobs include Mortgage Trainer, Financial Advisor, and Stockbroker. Jamal graduated from George Mason University with a bachelors of science in finance and is a CFA charterholder. Follow me for tech trends, info on consumer brands, and sports banter.
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